# Enghouse Systems Limited (ENGH.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Technology / Software. Price C$16.31, market value C$887 million.

## Valuation
- **P/E (trailing): 12.4×** (5-yr avg 19.5×, 3-yr avg 18.3×). Enghouse Systems Limited trades at 12.4× trailing earnings, well below its own five-year average of 19.5×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 12.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.8×**. Each dollar of revenue is priced at 1.8×.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.0×**. Enterprise value is 5.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 11.0%** (5-yr avg 7.4%). Free cash flow equals 11.0% of the market value, above its five-year average of 7.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.1%**. The inverse of the P/E: 8.1% of the price is earned each year.

## Profitability
- **Gross margin: 51.6%**. Enghouse Systems Limited keeps 51.6% of revenue after the direct cost of what it sells.
- **Operating margin: 19.2%**. 19.2% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.8%**. 14.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.1%**. 12.1% on shareholders' equity is solid.
- **Return on invested capital: 21.0%**. Return on all capital, debt included, is 21.0%: comfortably above what that capital costs.
- **Return on assets: 8.4%**. Each dollar of assets produces 8.4% of profit.

## Growth
- **Revenue growth (1 yr): -0.7%** (3-yr 5.3%/yr, 5-yr -0.2%/yr). Revenue fell 0.7% over the last year, against -0.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -8.8%** (3-yr -7.6%/yr, 5-yr -5.4%/yr). Earnings per share fell 8.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 0.3%/yr**. Free cash flow has compounded at 0.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Enghouse Systems Limited holds more cash than debt.
- **Interest coverage: 149.0×**. Operating profit covers interest 149.0× over, a safe margin.
- **Current ratio: 1.71** (quick 1.71). Current assets cover the next year's liabilities 1.71 times.
- **Altman Z-score: 4.29**. A Z-score of 4.29 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 7.60%** (C$1.22 per share, trailing). Enghouse Systems Limited yields 7.60%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 84%** (68% of free cash flow). 84% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Dividend growth (5 yr): 17.6%/yr** (1-yr 16.0%). The dividend has compounded at 17.6% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 9.4%**. Dividends plus net buybacks return 9.4% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (4 analysts). 4 analysts cover Enghouse Systems Limited; the consensus is hold, with an average price target of C$17.00 (+4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -24.9%** (YTD -17.0%, 3-mo -9.0%). The shares are down 24.9% over twelve months including dividends.
- **From 52-week high: -25.3%** (10.2% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 40**. An RSI of 40 is neutral.
- **Beta (1 yr): 0.38** (volatility 30%). Beta of 0.38 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ENGH.TO · Page: https://foliofundamentals.com/stocks/engh.to

Not investment advice.